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What is the standard LTV for a commercial real estate loan?

by ap67 from Lewis Center, Ohio. Aug 15th 2014 Reply


MIKE CONVIN (mconvin)
#6 ranked lender in Delaware - 202 contributions

hi: what type of commercial property if I may ask? can u show rent rolls etc or need a stated income loan? Mike (703) 505 5300

Aug 15th 2014
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

For multi-family (5+ units), as little as 20% down may be available, with excellent credit, quality building and good financials. Most multi-family is 25% down, and up to 35% down, depending on property type and property income.

Aug 15th 2014
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Kimberly Lawson (kilawson)
#55 ranked lender in Ohio - 150 contributions

It's going to depend on the type and amount you're looking to borrow. Could be as high as 85% for acquisition and/or rate and term refinance. 65-75% for cash out. Again, going to depend on a lot of factors but, that's what I could suggest off the cuff. If I can answer any add'l questions, I'd be happy to help. Best wishes otherwise, Kimberly Lawson, Licensed Mortgage Loan Originator - Ohio only (all States for commercial loans). Licensing and contact information can be found on my profile.

Aug 15th 2014
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

There is no "Standard" LTV. When it comes to commercial property, there are no standard set of "Conforming guidelines" such as the case with residential lending programs. So each lender offering commercial funding and make up their own set of rules as they see fit.. For most commercial lenders, they will look at several factors in determining the allowable LTV.. Property type (Gas station, strip mall, laundry mat, car lot, multi-unit properties, hotel/motel, etc..) with each property type requiring a different allowable LTV.. Also, the LTV could be based on your level of experience.. for example, if you own 5 strip malls, and are looking to purchase another, then it's very possible the lender would allow for a higher LTV since you have a proven track record of success with strip malls... Conversely, if you have never borrowed for commercial lending and have no experience, then they might ask for a larger down payment/lower LTV. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Aug 15th 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

As you're seeing from others, there are no "standards" because each lender has their own internal guidelines.

Aug 15th 2014
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Sean Young (SeanYoung)
#1 ranked lender in Colorado - 1,112 contributions

That depends to be honest. The loan to value and down payment requirements are different based on what type of commercial loan you are getting. I would do some checking with a local commercial lender and a bank to see what options they have available for your particular situation. Best wishes, Sean

Aug 17th 2014
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